Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Pioneer launches first UK fund in bid to offer rate rise protection

Pioneer Investments has launched its first UK dedicated fund, which it says will cater for investors when bond yields and interest rates rise.

The Pioneer Sicav - Absolute Return Sterling Bond fund, an extension of Pioneer's existing absolute return bond strategy, looks to deliver capital preservation while generating positive returns in rising or falling markets. 

The fund is designed to deliver cash-like returns based on the Sterling Overnight Index Average (Sonia), which it aims to outpeform by 4%. It is co-managed by Pioneer Investments’ European fixed income and credit teams, with Tanguy Le Saout and Cosimo Marasciulo serving as lead managers.

David Hanratty, Pioneer's head of UK and Ireland distribution said in a statement: 'Rising yields and falling bond prices are becoming a reality. The real question here is the timing and the pace at which they will rise.

'We believe that investors now need to consider new approaches to fixed income investing, stepping away from traditional mandates, and considering alternative and innovate approaches.'  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames' CIO: US bowed to international pressure

Kames' CIO: US bowed to international pressure

Stephen Jones, chief investment officer of Kames Capital, said the US domestic economy passed the test, but international concerns weighed heavy.

Play Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

With the US interest rates on hold for now, we suss out how wealth managers are managing their fixed income exposure in this environment.

Brewin's Foster: debating 'Corbynomics'

Brewin's Foster: debating 'Corbynomics'

This week Brewin Dolphin's head of research discusses Jeremy Corbyn's policies and their economic impact 

Wealth Manager on Twitter